The US private company is one of more than 230 companies that have signed the Net Zero Asset Managers (NZAM) initiative, a group of investors committed to achieving the goal of achieving net zero greenhouse gas emissions by the middle of this century.
As part of their membership, all those who have signed up for tasks related to their investments.
However, the company has refused to set a formal target or expectation for the bulk of its assets – more than $ 5 trillion – which have been invested in index-monitored funds, many of which have climatic targets and weak mission-strong firms.
Vanguard has invested more than 70% of its equity index fund assets in companies with some kind of emissions reduction target, although most of them are not yet fully integrated with it.
Vanguard said it would engage with companies in their climate plans and commitments, but needed a concerted effort from companies, markets and policymakers.
In response, activists criticized the company’s ambition.
“Vanguard should be ridiculed by NZAM for this ridiculous attempt at a climate goal,” said Casey Harrell, a senior strategist with the Sunrise program. “Vanguard should start again and do better.”
Elaine Flanagan, Campaign Director for the Earth Quaker Action Group, said: “Such adequate climate commitments further strengthen us to create powerful grassroots pressure to awaken Vankard’s current leadership.”
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